Recently Adopted Accounting Standards and DevelopmentsRecently Adopted Accounting Standards
Effective for the financial year ended December 31, 2024 and for interim periods beginning January 1, 2025, the Company
adopted Accounting Standard Update (“ASU”) 2023-07, Segment Reporting: Improvements to Reportable Segment
Disclosures. Effective January 1, 2025, the Company adopted ASU 2024-01, Compensation — Stock Compensation: Scope
Application of Profits Interest and Similar Awards. Effective for the financial year ended December 31, 2025, the Company
adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, using a retrospective method,
which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes
paid. The adoption of these standards did not have a material impact on the Company’s Consolidated Financial Statements.
Recent Accounting Developments
In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, Income Statement —
Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income
Statement Expenses, which requires improved disclosure of the nature and disaggregation of income statement expenses. The
standard is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15,
2027. The Company is currently evaluating the potential impact that this standard may have on its Consolidated Financial
Statements.
In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810):
Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, which revises guidance on how an entity
should identify the accounting acquirer in a business combination in which the legal acquiree is a VIE. The standard is
effective for annual periods beginning after December 15, 2026 and interim periods within those annual reporting periods. The
Company is currently evaluating the potential impact that this standard may have on its Consolidated Financial Statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Software
(Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which increases the operability of the
recognition guidance considering different methods of software development. The standard is effective for annual periods
beginning after December 15, 2027 and interim periods within those annual reporting periods. The Company is currently
evaluating the potential impact that this standard may have on its Consolidated Financial Statements.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting
Improvements, which amends certain aspects of the hedge accounting guidance to more closely align hedge accounting with the
economics of an entity’s risk management activities. The standard is effective for annual reporting periods beginning after
December 15, 2026 and interim periods within those annual reporting periods. The Company is currently evaluating the
potential impact that this standard may have on its Consolidated Financial Statements.